Pinhook Market Trends Point to ‘Up’ Market in 2018

MarketWatch: Yearling-to-juvenile pinhooks

If the recent cycle of North America’s 2-year-olds in training market stays true to form, this year should be an “up” year for yearling-to-juvenile pinhookers. The market has been on a moderate roller coaster since 2014, with the percentage of profitable horses sold ranging between 41% and 50%. The rate of return has fluctuated more, ranging from 25% to 55% during the past five years but on a generally upward curve.

Profitability and ROR are derived from similar assumptions. A horse is considered profitable if its 2-year-old price minus a 5% sale commission exceeds the yearling sale price plus $20,000 for the cost of breaking, training, and upkeep. ROR is the percent difference between the average yearling price plus maintenance cost and the average net 2-year-old price.